Silk Road forums

Discussion => Security => Topic started by: Olwyn on January 19, 2013, 03:15 am

Title: Help figuring out wallets
Post by: Olwyn on January 19, 2013, 03:15 am
I have some coins I purchased on the clearnet that I'd like to transfer through some different wallets before depositing them here on SR, and I have some questions:

1) Can you create wallets using Tor? I've seen some people say not to access certain sites via Tor because they might ban/lock your account. I tried accessing instawallet through Tor, and it refuses to load ( gives The connection has timed out error ), but if I load it on the clearnet, it loads fine.

2) My coins were purchased via Coinbase. The first wallet I transfer them to ( not another Coinbase one ) will be "tainted" since Coinbase would have logs linking back to it, correct?

3) What is another reputable wallet service I can use besides  Instawallet? I see some people say using multiple Instawallet wallets is enough, but it seems it would be safer to use different services?
Title: Re: Help figuring out wallets
Post by: Wadozo on January 19, 2013, 04:03 am
The first thing to remember is that Bitcoins are not illegal (I'm from Australia) but check if your from somewhere different. You don't need nto use Tor to "create wallets." Wallets contain the bitcoin address you give to the person/place you purchase the coins from. For safety reasons, you should acquire a new bitcoin address for each and every transaction you make. Using the same address again and again can lead to a history of transactions being linked to the same person where as a new address for every transaction is a much safer option. The currency exchange, Mt. Gox, wont accept Tor connections anymore. This was the exchange that was hacked approx 1-2 years ago and around 60,000 client identities were stolen along with some coins. I wouldn't use InstaWallet myself, or any other web client Wallet (eWallet), as it's the least secure option available. Here is a clearnet link to a bitcoin vendor in Australia (nothing to do with SR) which details your options with the different wallet types available and details each one for you. (https://bitinnovate.com/need-a-wallet/) Please note the comment about InstaWallet. With the coins you already have, change the bitcoin address to a new one and transfer them where you want. The wallet won't be tainted unless you've come to the attention of LE but this is an example of why a new bitcoin address should be used for every transaction. Another newer client available is Electrum - http://electrum.org/. A good set-up is to install a Desktop Client on your PC. Transfer your coins from your supplier to your desktop client and then transfer coins to your SR wallet when your ready to make a purchase.  :)
Title: Re: Help figuring out wallets
Post by: Olwyn on January 19, 2013, 06:25 am
..You don't need nto use Tor to "create wallets."...

If I'm using the clearnet to create wallets, won't my IP be easily linked to them?

I wouldn't use InstaWallet myself, or any other web client Wallet (eWallet), as it's the least secure option available.


I'm not looking for long term storage, just short term transfer to distance my information from them.

..change the bitcoin address to a new one and transfer them where you want. The wallet won't be tainted unless you've come to the attention of LE but this is an example of why a new bitcoin address should be used for every transaction.

This is related to my first concern....if wallets are created through the clear net, wouldn't they be easily connected with my IP, and thus tainted?

Another newer client available is Electrum - http://electrum.org/. A good set-up is to install a Desktop Client on your PC. Transfer your coins from your supplier to your desktop client and then transfer coins to your SR wallet when your ready to make a purchase.  :)

I understand desktop wallets would be secure for long term storage, as they allow you to take coins "offline", but do they provide more privacy when transferring coins from the clearnet?
Title: Re: Help figuring out wallets
Post by: Wadozo on January 19, 2013, 07:54 am
Buying Bitcoins s is perfectly LEGAL. It is a currency just like the American dollar is and a growing number of Currency Exchanges now carry Bitcoins. As I said before, it's imperative you use a new bitcoin address for all your transactions.You could transfer your coins to say InstaWallet, then move them again to a desktop Client before again sending them to SR when your ready to buy. That would be a bit of an over kill if you plan on just buying on SR, considering buying coins is still LEGAL to do. Using a Web Client for Bitcoins carries a bigger risk than using a Desktop Client because your effectively relying on a 3rd party to ensure they are operating a safe and secure server, able to withstand attacks which could cause you to not be able to access your coins or worse still, lose your coins forever. If a wallet is created using a standard browser, they might effectively have logs of your I.P address. Yes, this is correct. However, tell me exactly what you have done or what law you have broken which would cause the Police to apply for a warrant to obtain the logs of all users who  have logged on recently. Your worrying about something which won't happen until the day buying bitcoins became illegal. The your theory has some merit
I personally would never trust a Web Client for Bitcoins as I have no control on what may happen at anytime to my coins. The operator could go bust, be hacked or even worse, let his security lapse allowing potential vulnerabilities to be exploited. The end result will be the same though, no coins. . Desktop clients store a collection of keys on your PC (or wallet address). These keys allow you to send and receive bitcoins through the Bitcoin network (P2P). Nobody has access to these keys except yourself, and they must be kept secure. Always create a back-up of your Wallet in case it's accidentally deleted or has a corrupt file. The important point is Bitcoins are still a legal currency traded all over the world on a daily basis. Police will not be attempting to gain access to a companies logs because no crime was committed and there wouldn't be a Judge anywhere in this world who would sign off on a warrant when no crime has been committed.  ;)
Title: Re: Help figuring out wallets
Post by: sirius on January 19, 2013, 07:59 am
As I understand it when you send coins from your wallet to your SR wallet the transaction has to be funneled through TOR, which of course helps anonymize the transaction.. and upon arrival at SR all coins are washed through a tumbler, further securing your operations.
Just remember to change up your address and it's fine. It doesn't matter if somebody sees coins go into your wallet, they can't see where they go when they depart.
Hope that helps :)
Title: Re: Help figuring out wallets
Post by: jagfug on January 19, 2013, 10:32 am
Just chiming in. I'm pretty carefree about this, but I do change my btc address on SR, prior to my next "shopping spree". I usually transfer directly to SR, but when I'm feeling skittish, like when I used a bitcoin loan service, (thank you AA), I used my Blockchain Wallet. It takes a miniscule amount of btc (pennies on the dollar), or you can opt to "up the ante" for a faster transaction. That one tumble , and then to SR should be more than adequate from what I've read.  It's really overkill, unless you're dealing in huge amounts, personal usage amounts should raise no red flags.

As was said by many a sage already. Bitcoins are not illegal. There are many goods and services outside the Silk Road that accept them, and even some stores and eateries in the real world, accept btc as payment. In the more upscale cosmopolitan areas. Then there are plenty of online sites too, all legit, that accept them.

Pretty cool, huh?

https://blockchain.info/wallet

Check it out. Super easy to set up.

Peace

jagfug

 
Title: Re: Help figuring out wallets
Post by: Olwyn on January 19, 2013, 11:22 am
Alright, I just placed my first SR order  :-X Transferred coins from coinbase to instawallet to SR.... Nervous about it, but I'm sure it's just because I'm a n00b  ;D thanks for the advice everyone.
Title: Re: Help figuring out wallets
Post by: Empathy101 on January 19, 2013, 11:22 pm
What are the best options for a desktop BTC client?
Title: Re: Help figuring out wallets
Post by: jagfug on January 20, 2013, 12:44 am
What are the best options for a desktop BTC client?

http://bitcoin.org/clients.html

Start there. They recommend the first one, Bitcoin QT. It's more than enough security. I personally don't use it. Just keep it in case I need to stash some away for whatever reason,. SR down, Bitinstant down. Etc.  Takes like half a day to download the chains into sync.

Good luck. - I like the blockchain.com site. It's not desktop, but like I think I said before, it goes through their tumblers, from wherever you got them, then to SR. I'd say that's more than enough.

In the beginning I was doing BitInstant.com for buying, using bitcoin to email address, and the link they send you let's you put whatever wallet you want, it's another company called Catapult.

I've rarely had problems. Only small glitches and Bitinstant's customer service people get right back to you.

Hope that gets you going.

Good Luck.

jagfug

PS. If you're in UK, then forget BitInstant. Right now, besides the US, they only handle the following
Bahamas, Cayman Islands, Kazakhstan, Puerto Rico, Russian Federation, Turks and Caicos Islands, Ukraine, US Virgin Islands,  British  Virgin Islands.